Knowledge Base

Which method must be used to publish the performance of a UCITS according to the AMF?

TWR (Time-Weighted Return)

MWR (Money-Weighted Return)

IRR (Internal Rate of Return)

YTM (Yield To Maturity)

Which formula is used to calculate the dividend yield for a stock?

Annual dividend / Share price * 100

Price change / Initial price * 100

Annual coupon / Bond price * 100

Par value / Purchase price * 100

What is the yield on a zero-coupon bond purchased at 80 and redeemed at 100 in 3.5 years?

(Par value / Price)^(1/n) - 1

(Annual coupon / Price) * 100

(Price change + Dividends) / Initial price * 100

(Final price - Initial price) / Initial price * 100

TSR (Total Shareholder Return)

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The TWR (Time-Weighted Return) incorporates investor capital flows in its calculation.

True

False

For a bond with a 5.30% coupon, purchased at 101.55% of par with a 5-year maturity, what is the approximate yield to maturity (YTM)?

4.91%

5.22%

5.30%

6.58%

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Items to categorize:

Dividend yield

TSR

Current yield

YTM

Categories:

Equities

Bonds

Annualization of performance is always permitted for periods shorter than one year under GIPS standards.

True

False